Correlation Between Superior Uniform and JX Luxventure

Can any of the company-specific risk be diversified away by investing in both Superior Uniform and JX Luxventure at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Superior Uniform and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Superior Uniform Group and JX Luxventure Limited, you can compare the effects of market volatilities on Superior Uniform and JX Luxventure and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Superior Uniform with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and JX Luxventure.

Diversification Opportunities for Superior Uniform and JX Luxventure

-0.66

Correlation Coefficient

Superior Uniform  JX Luxventure

Excellent diversification

The 3 months correlation between Superior and JXJT is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and JX Luxventure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure Limited and Superior Uniform is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Superior Uniform Group are associated (or correlated) with JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure Limited has no effect on the direction of Superior Uniform i.e., Superior Uniform and JX Luxventure go up and down completely randomly.

Pair Corralation between Superior Uniform and JX Luxventure

Considering the 90-day investment horizon Superior Uniform Group is expected to generate 0.37 times more return on investment than JX Luxventure. However, Superior Uniform Group is 2.7 times less risky than JX Luxventure. It trades about 0.13 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.08 per unit of risk. If you would invest  1,436  in Superior Uniform Group on August 30, 2024 and sell it today you would earn a total of  253.00  from holding Superior Uniform Group or generate 17.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Superior Uniform Group  vs.  JX Luxventure Limited

Superior Uniform

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Superior Uniform Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Superior Uniform exhibited solid returns over the last few months and may actually be approaching a breakup point.

JX Luxventure Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JX Luxventure Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Superior Uniform and JX Luxventure

The main advantage of trading using opposite Superior Uniform and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, JX Luxventure can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JX Luxventure will offset losses from the drop in JX Luxventure's long position.

The idea behind Superior Uniform Group and JX Luxventure Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.